The latest gameplay they showed off did make it look more like an Elder Scrolls game than I was expecting it to be based on the early screenshots. The combat sounds more like what we expect from TES, for better or worse, and it does sound like they really want to encourage that kind of Elder Scrolls exploration, which should be interesting in an MMO format. It might actually be neat to find a hidden cave out in the world and find a fellow traveler exploring it as well. It won't feel like you're discovering things in the single player games, but it may have its own unique sense of adventure that we haven't really experienced yet.
The only big thing keeping me from keeping a closer eye on it is its subscription plan. Guild Wars 2 has already proven that a quality MMO doesn't need millions of dollars a month to stay profitable and keep the servers running. And thats the thing; I love GW2, so how does another MMO come along after that and say "hey, how about you start paying monthly fees to have some fun?", it just doesnt work. Even if I could theoretically have more fun with TESO, I'd still end up hating the fact that it's costing an arm and a leg to get that enjoyment.